$5,000
Nevada
Motor Vehicle Garage Bond

Businesses are required to file a $5,000.00 bond with the State of Nevada Department of Motor Vehicles (the "Obligee")
to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost
of ensuring the public is compensated for damages resulting from a licensed business breaking licensing
laws.

Motor Vehicle Garage Bond

How much does the Nevada Motor Vehicle Garage bond cost?

Nevada Motor Vehicle Garage bonds typically cost
between $100 and $450
depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Credit

Premium Rate

Bond Cost

1.00%

$100

1.20%

$100

1.50%

$100

2.25%

$112.50

3.00%

$150

3.75%

$187.50

6.00%

$300

6.25%

$312.50

7.00%

$350

8.00%

$400

9.00%

$450

Is a Credit Check Required for Nevada Motor Vehicle Garage Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the Nevada Motor Vehicle Garage bond required?

Businesses are required to purchase and file a $5,000 bond with the State of Nevada Department of Motor Vehicles to activate their license.
The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for
damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Nevada Motor Vehicle Garage bond work?

Nevada Motor Vehicle Garage bonds must be issued by an insurance carrier admitted by the Nevada Department of Insurance.
The insurance company issuing any surety bond, such as the Nevada Motor Vehicle Garage bond, will also be referred to as the "surety company"
or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of Nevada Department of Motor Vehicles as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business
will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum").
The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners
are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.